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January 19, 2015

SAP plans cloud expansion in China

The software giant is aligning with partners to bring "tremendous growth and change".

By Amy-Jo Crowley

SAP is looking to expand its presence in cloud computing and ecommerce across China, which it believes will bring "tremendous growth and change".

In an Interview on SAP TV, Mark Gibbs, president of SAP Greater China, said the software giant is aligning with partners to provide "great support and leadership to help China run better".

"We are doubling down and really focusing by industry across China, and I think we are aligning the whole of SAP and our partners by industry, and I think this will bring tremendous growth and change," he explained.

He pointed to areas in e-commerce, referring to China as the "e-commerce capital of the world", and cloud computing as opportunities for growth.

"Ecommerce in China is not about shopping, it’s about lifestyle. And I think that the opportunity we have for hybris and for our entire ecommerce suit is fantastic across China, being the ecommerce capital across the world," he said.

He added that SAP’s SuccessFactors public cloud offering, launched in late 2014, would accelerate business throughout 2015 and beyond.

"We are now in discussions with CDC and other partners on how we can expand to the full breadth of our cloud solutions," he said.

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Gibbs continued to say that he is hopeful that after a year of relative austerity, China’s state owned enterprises will return to a normal spending pattern.

"We’re looking at the 13th five year plan which starts in 2016. There’s a six core tenants for the 13th five year plan, and I think three of them play particularly strongly into the SAP arena."

"The first one is around redefining industry, so a big focus on industry. The second one is looking at energy and environmental protection and sustainability. And the third area is internationalisation as more and more Chinese companies become global. SAP is perfectly positioned to provide great support and leadership to help China run better."

The announcement comes as the completion for cloud computing and ecommerce gains traction in China.

Amazon is one of the main players, along with Microsoft and IBM, which are driving the development of the cloud computing market in China.

In October 2014, IBM signed a deal with Chinese ISP Tencent to provide its Software-as-a-Service offering, which includes mobile, cloud computing, and big data tools.

Meanwhile, Amazon announced plans to bring millions of its products to Chinese shoppers following the signing of a new free trade partnership in the country in August 2014.

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